St. Paul daily globe., 1887-01-13
PIERCEsS MESSAGE.
what the Retiring Governor Has q,
Say to the Legislature.

Say to- the Legislature.
Gov. Pierce spoke as follows on topics of
territorial intel est;
Gentlemen of the Council and House of
Representatives: Once more the legislature
of the territory of Dakota has assembled in
obedience to law. With few exceptions the
faces OF those who compose this general as
Sc nbly are to these halls. In the eXer-
else of their sovereign will and pleasure the
people have seen tit to fill the places of their
former servants with other men, who have
gained in daily intercourse with them their
esteem and confidence. But while the per-
eonnel OF law making bodies may change, legis-
lative authority and responsibility remain
Men die, officials change, but government
endures. For the time being this Assem- blage
is empowered to speak and act for the 500,000
people who comprise the populatiou of this
territory. 1t is grave responsibility. How
you shall perform this representative work
most faithfully and effectively, is a question
that may well inspire anxious thought and
serious reflection. In MANY respects, gentle
men, you come here at an auspicious time,
and unGer favorable conditions. ] do not
remember period when better and kinder
feeling has prevailed; and in spite of the hard
times so generally felt throughout the Union,
there has never been an assemblage Of the
legislature which found the fiscal concerns OF
the territory in so prosperous Il condition.
Taxation for territorial purposed is now so
light as to be scarcely felt by the people, and
CAN BE REDUCED
still further in the near future. The treasury
shows balance on hand, not only sufficient
to pay all proper expenses of the territorial
government, and all reasonable appropria-
tions, but % pay off all the bonded indebted
ness OF the territory, which under the option
contained in the law, can be called in at this
time. Ninety thousand dollars of bonds,
which it was provided might be paid by the
territory at its option within FIVE years of
hei hay-a al q lied for h1,
the treasurer, but owing TO the neglect of the
law to provide exactly how this call might be
issued, and under what circumstances inter-
est ON such bonds should thereafter cease,
holders have refused to present them for
dempton. This difficulty should be promptly
met b, the enactment of law permit ing the
treasurer to take advantage of the option re-
served, and holders be required to either
fund the bonds at lower rate of interest, or
present them for redemption. The territory
is paying about Sl4 pr day on the Sc bonds,
which can be stopped at once If the legis-
lature Will grant the necessary authority.
SALE OF BONDS.
The bonds authorized by the last legisla-
ture, amounting to $4,000, we're sold at
1903 2-10. and the premium. amounting to
S5,63S.4 40, was credited to the territory on the
books OF the treasurer This is the first in
stance i'll the history of the territory where
bonds have sold at premium; indeed as late
as the summer of 1884 similar class of bonds
were sold at 90 and 9S15. While the sale,
therefore, was in some respects gratifying,
and the growth of confidence in the financial
standing of Dakota very encouraging, there
is no question but that the per cert. bonds
of the territory are worth much more than
the amount received. Two or three things
have operated TO injure, in some degree, our
financial standing; one is the fact that Dakota
is still in territorial condition, territorial
bonds being unpopular rs rule. Another
is the existence of the outstanding territorial
warrants, issued under the law providing for
the capital commission. In some places
A NoN-PAYMENT
of these warrants by the treasurer seemed to
give the impression that the territory was
either unable to pay, or else was endeavoring
to repudiate her obligations. With the latter
obstacle removed, believe that per cent
bonds can be sold at par, and If longtime
bonds should be issued, the interest can be
male even less than that named 1t will not
be year before our per cent. bonds having
ten years to run will be worth at least l. II or
l. Is; / am informed that such boIds cannot
be purchased to-day for less than 10 1t
would no doubt be better if our bonds were
not classified as agricultural college bonds ~
s'normal school bonds,'' etc., but we've issued
as one general bond of the territory. This
would cause no embarrassment in any future
division of territorial Indebtedness. for
the appropriation always states the OBJ
iect for which bonds are issued. 1t
would also add to the popularity of our
securities if the time for which they run were
made certain instead of optional with the
territory. Investors do not like to be in
doubt as to whether they have loaned money
for FIVE years or ten or twenty.
RECEIPTS AND EXPENDITURES.
The total receipts from all sources for the
biennial period covered by the treasurer s
report, including balance on hand at the
close of 1884, were $l,395,2 ,2l6.67. The total
amount pa ont for same period was 81 ,162,-
234.U4, leaving a balance in the treasury Nov.
So 1886, of $232, ,9S2.63. Deducting the
amount paid to counties as their share of
railroad tax, the amount of bonds, etc., for
permanent Improvements Of public institu-
tions and we have q balance of S7O6,27S,
which represents the amount expended dur
ing the biennial period. Take from this the
cost of the constitutional convention, the
census New Orleans exposition, furniture
and heating for capitol, and other extra
ordinary appropriations made two years ago
(but not required now)and the total expendi-
ture, less the bond interest. is S53S,219. 73
for the ordinary expenses of the territorial
government, or S269, 1886 per year.
~ eR tS